Clarifying the Patent Situation

Filed in archive EPC Standards on August 20, 2004

As pointed out before in this blog, the RFID patent situation is messy.

But some steps are being taken to clarify the patents situation.

One of the largest holders of RFID patents, Intermec, recently announced the conditions under which it will license its intellectual property.

It all relates to EPCglobal's work to establish EPC standards. As it establishes standards, EPCglobal wants to ensure that proprietary patent rights don't get in the way of growing the RFID market and unfairly enrich one company at the expense of others. As the RFID Journal reports:

Under EPCglobal's IP policy, which all EPC subscribers must sign, companies holding IP they believe is relevant to EPC standards must declare their IP and indicate whether they will make it available to other vendors on a royalty-free or a reasonable and nondiscriminatory (RAND) royalty-bearing basis.

Intermec announced that it will make 5 patents available royalty-free. Another 14 would be made available on a RAND royalty-bearing basis.

EPCglobal now has the option to go back and revise its proposed standards to remove elements that relate to Intermec's IP, if it thinks Intermec's licensing terms would be too restrictive, etc.

The industry is at a critical juncture right now that will shape its future. Clarifying the patents situation and keeping EPC standards as free and unrestricted as possible is key to growing the RFID market. Read the entire RFID Journal article - it has lots of detail.